No Credit Check Loans
Look carefully when you see someone offering loans with “no credit check.”
Applying for No Credit Check Loans?
A no-credit-check loan from a payday lender can seem very attractive if you have weak credit (typically a FICO score of 620 or below). It can be difficult for you to get a loan from a bank or even from most online lenders.
But you need to take several things into account before making that final decision. Spend a little time doing research, and you’ll be much better off in the long run. Avoid predatory loans from payday and title lenders at all costs. If you don’t, you may go from “no credit” to “no paycheck” or, even worse, “no car.”
Why does checking credit matter?
It’s important for borrowers to understand credit checks because, generally, each time a lender or financial institution checks your credit, your score is actually lowered. It doesn’t seem fair, does it? You need to borrow money, but to borrow money, a lender checks your credit—which can ding your credit score, making it harder to borrow.
Many traditional lenders and financial institutions perform what’s called a “hard credit inquiry”—or hard credit check—when they review your credit. This means they’re judging your credit score, credit report and credit history to determine how risky it will be to lend you money. So why does a hard credit check hurt your credit?
A number of hard credit checks in a short amount of time is often interpreted as a sign that you’re desperate for money—it may look like you’re either mismanaging the money you have or simply trying to accrue more debt without paying off the money you currently owe. It makes you look risky—and your credit score is then lowered to reflect that risk.
If you need fast cash, then you’re likely only concerned about getting the money you need now and not letting a bunch of hard credit checks further lower your score. In these cases, a no credit check loan may seem like just what you need. But be careful!
How do No Credit Check Loans work?
If a lender is offering you a loan without looking into your credit at all, they’re probably a predatory payday or title lender. Predatory lenders offer loans at astronomically high annual percentage rates (350 percent and above) and for very short terms (usually 2 to 4 weeks). This toxic combination of high rates and short terms amounts to a loan that can be impossible to repay. Why would someone loan you money that you can’t repay? Good question. Loans like these are designed to trap borrowers into a cycle of debt through an action called rollover (a persistent pattern of “extending” the loan while incurring new fees and interest charges). This means you keep paying and paying… and paying… and paying, but you’re just paying the interest on the loan—not on the principal of the loan itself.
How do loans through OppLoans work?
At OppLoans, we provide access to loans that take into account a number of factors outside of your credit score. These include proof of regular employment for at least the past two months, and a traditional bank account in your name with at least 90 days of history. This—along with utilizing alternative credit data—all adds up to a picture of your ability to repay your loan.
Loans through OppLoans utilize alternative credit data in looking at your abilty to repay—which you may also hear referred to as a “soft credit check.” Credit inquiries using alternative credit data only return a high-level description of your creditworthiness—and most importantly they do not affect an individual’s traditional credit score.
- The Truth About No Credit Check Loans | White Paper
- Meet Your Credit Character | eBook
- How to Protect Yourself From Payday Loans & Predatory Lenders | eBook
Blogs: No Credit Check Loans
- Want to Avoid No Credit Check Loans? Build an Emergency Fund
- When You Get a Cash Advance, Do They Check Your Credit Score?
- Is That Cash Advance Loan Really a Cash Advance Loan?
- What Does a “No Credit Check” Loan Really Mean?
- How to Shop for a No Credit Check Loan
- 5 Must-Know’s Before Applying for a “No Credit Check” Loan
- 6 No Credit Check Loan Red Flags
- Can a No Credit Check Loan Actually Hurt Your Credit?
- Is Checking your Credit Score Bad?
- Is Guaranteed Approval For No Credit Check Loans A Real Thing?
- March Money Madness: Make Sure Your No Credit Loan Is Nothing but Net